Author Archive
Single premium Payment Protection Insurance (PPI)
Payment Protection Insurance is insurance designed to cover loan, finance or credit card payments in case you are made redundant or are too sick to go to work. More commonly known as ‘PPI’, it is sometimes referred as ‘payment cover’ or ‘Accident, sickness and unemployment cover’ (’ASU’ abbreviated).
PPI mis-selling scandal and the impact of credit cards
One of the major elements of the PPI mis-selling scandal was with credit cards and store cards. Credit cards have been considered a primary cash-cow for banking institutions, with costly short-term credit extended with typically unfair charges enforced for missed payments, changed credit amounts and a variety of similar behavior. The introduction of PPI as one more product for credit card consumers to purchase transformed them into far more profitable for card providers – until the real extent of the PPI mis-selling claims came out.
